Sliding Spending and Output
cards up and down on vertical strings helps students understand
the Keynesian model, the multiplier effect, and fiscal policy
of students solve supply and demand problems using overhead
transparencies and present their solutions to their classmates.
Policies sometimes have
consequences that the lawmakers either ignored or didn't
anticipate. This exercise asks students to use economic
principles to identify the unintended consequences of several
Teams of students figure out how
the government could (really!) save lots of lives each year
without spending any more money. The trick is to replace
inefficient health and safety programs with more cost-effective
ones. This exercise is based on studies that have been
published in scholarly journals.
demonstrates that ten payments of $100,000 over a ten year period
does not equal $1,000,000. A simple net present value equation
teaches students how to do continuous compounding using the ex
button on their scientific calculators. The problems at the
end of the activity vividly demonstrate how small changes in a
country's growth rate can drastically affect the standard of
living of future generations.
to frown on the use of regulations to control externalities. This
exercise demonstrates that good regulations are difficult to design.
This is a series of doctored photos
depicting scenes we'll likely never see in the real world. Ask
your students to explain why. The photos can be used to introduce
new concepts or to review definitions.
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